Fix their materials handling costs for up to 7 years

Off-set 100% of rentals against taxable profits

Take advantage of off-balance sheet funding

Enjoy usage benefits without ownership risks

Use their cash in other areas of the business

With contract hire, customers have no need to;

Budget for unexpected maintenance costs

Tie up cash in depreciating assets

To pay big deposits or VAT on delivery

To constantly negotiate servicing costs

To borrow funds on an overdraft facility

In 1990, contract hire accounted for 15% of all new truck sales in the UK. In 2006,
contract hire accounted for 70% of all new trucks sales in the UK.

According to industry statistics, 85% of UK companies now use contract hire as a
means of acquiring capital equipment.

Lease Purchase

A lease purchase contract allows the buyer to purchase the truck for a fixed monthly fee over a predetermined period.

For tax purposes, the hirer is considered to be the owner from day one and can claim available tax allowances and off-set interest charges. The asset is also shown on the balance sheet.

« back | home